Volkswagen is expanding its electric vehicle (EV) offerings in China with the new ID.UX sub-brand, targeting new customer groups. The brand combines Volkswagen’s traditional virtues with a design DNA focused on lifestyle. The first model under the ID.UX brand, ID.UNYX, is set to debut in 2024.
To foster innovation, Volkswagen is bolstering its local development ecosystem in China by strengthening its production, development, procurement, and battery production capabilities in the country. By the end of the year, the number of employees at the R&D site in Anhui is expected to reach 3,000 experts. Volkswagen is also increasing localization efforts to reduce development cycles significantly. Chinese partners like XPENG, Horizon Robotics, and Thundersoft will be involved in the development process early on.
Volkswagen has collaborated with XPENG to launch two new mid-class vehicles by 2026. The employees at joint ventures CARIZON with Horizon Robotics and CARThunder with Thundersoft are working on developing innovative systems for autonomous driving, infotainment, and connectivity. These partnerships aim to enhance Volkswagen’s offerings in China and cater to evolving customer needs in the region.
In addition to expanding its EV offering and strengthening its local development ecosystem in China, Volkswagen has also announced plans to increase localization efforts for battery production capabilities. By doing so, it hopes to reduce development cycles significantly while also reducing reliance on imported batteries.
Overall, these initiatives demonstrate Volkswagen’s commitment to innovation and growth in China as it continues to adapt to changing consumer needs and market conditions in the region.
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